Mphasis softens despite robust Q3 numbers

Mphasis softens despite robust Q3 numbers

Mphasis slipped 0.76% to Rs 229.95 at 11:46 IST on BSE, despite reporting 382.5% surge in net profit to Rs 65.86 crore in Q3 December 2007 over Q3 December 2006.

The results were announced after trading hours on Wednesday, 30 January 2008.

Meanwhile, BSE Sensex was down 30.53 points or 0.17% to 17,728.11 as US stocks fell on Wednesday, led by financial shares, when fears about the US economy's health resurfaced on speculation US bond insurers credit rating could take a hit. A credit downgrade of US bond insurers could further harm the banking sector and stunt the global economy as financial institutions take a hit from subsequent write-downs of their assets.

On BSE, 48,092 shares were traded in the counter. The scrip had an average daily volume of 68,790 shares in the past one quarter.

The stock hit a high of Rs 244.90 and a low of Rs 228.10 so far during the day. The stock had a 52-week high of Rs 339.80 on 4 May 2007 and a 52-week low of Rs 200 on 22 January 2008.

The mid-cap scrip had underperformed the market over the past one month 30 January 2008, declining 21.89% compared to the Sensex’s decline of 12.52%. It had also underperformed the market in the past one quarter, declining 19.76% compared to Sensex’s decline of 9.97%.

The company’s current equity is Rs 208.66 crore. Face value per share is Rs 10.

The current price of Rs 229.95 discounts its Q3 December 2007 annualized EPS of Rs 12.63, by a PE multiple of 18.21.

Mphasis’ net sales rose 244.4% to Rs 449.96 crore in Q3 December 2007 over Q3 December 2006.

The company provides application services, business process outsourcing services and infrastructure technology outsourcing (ITO) services.